GST - Input Tax Credit

[Ethirajan Parthasarathy]

Some of the new generation banks raise invoice for bank charges in the following format.

Bank Charges	1000
Add : GST	180
Total	1180
Less : Discount	1000
Net Payable	180

The customer pays Rs.180 only to bank and book it as ITC. Is ITC in such situation eligible.

I invite experts opinion on above.

AI Summary

Input Tax Credit eligibility when a supplier waives fees but issues an invoice-verify credit notes and GST deposit.
Whether Input Tax Credit is claimable where a bank invoices a basic charge and GST but grants a discount so the customer pays only GST; one view treats the waived fee as the bank's consideration supporting ITC, while other views contend that where consideration is effectively nil ITC is not appropriate. Parties should verify if the discount was effected by a credit note, whether GST was deposited or refunded by the bank, and reconcile entries in GSTR 2B; also check invoice issuance practices and related party status before claiming ITC.